Tag: HOA board

All state “may/shall” statutes imply HOAs as state actors

The use of the words “shall” and “may” have generally accepted meanings in state laws and statutes. Their use in bills and laws relating to HOA-Land raises the highly controversial question of: Are HOAs state actors?  “The overlooked impact and consequence of this word is to legalize activities and actions that were all-to-fore not legal rights granted to the HOA.”[1]

Arizona’s HB 2575 creates HOAs as state actors with the slick use of the legal differences between these terms. BUT, as applied to sui generis HOAs, implicitly create state actors. The bill introduces a new section (emphasis added) with, “ARS 33-1820. Powers of the association. Subject to the provisions of the declaration, the association may:” A 12 item list is presented mimicking the CC&Rs, a common tactic to legitimize contractual challenges to the governing documents. Very clever!

Item 4 is particularly onerous because of the use of the introductory “the association may.” A 12 item list is presented mimicking the CC&Rs, a common tactic to legitimize contractual challenges to the governing documents. Very clever!

Item 4 was particularly onerous because it permitted the HOA Board to lobby in the name of the members.

“[the association may ] 4. Institute, defend or intervene in litigation or administrative proceedings in its own name on behalf of itself or two or more members on matters affecting the association or planned community or the members’ interests.”

After 3 sessions ending with “ret on cal,” (retain on calendar)  I emailed my may/shall state actor argument (as summarized here) to the legislative leadership resulting in the sponsor’s amendment rewording item (4). In relevant part, “the association may not institute, defend or intervene in litigation or arbitration in its own name on behalf of itself or a member.”

Thus, a potential constitutionality challenge was avoided as I had instituted in 2013, and won, with the help on a nonprofit legal organization, Arizona Center for Law in the Public Interest (ACLPI).[2]

Although the bill passed out of the House with the other argument that the 12 items also reflect an implied state arm it was a major victory 1) on a broad constitutionality issue and 2) a punch in the nose to CAI who actively sponsored this bill, according to the AZ Homeowners Coalition.  CAI can be beat!

There are other arenas to challenge and expose CAI for what it is and stands for.  I present some 56 events over 24 years that serve to guide what worked and what did not work for advocates to successfully challenge the Evil Empire. Organized into 4 sections: On Reform Legislation, On The Bill of Rights, On the Judiciary, and On Civics.[3]  Available on Amazon, paperback or Kindle.

References

[1] See in general, Are HOA state actors created by statutory use of shall/may? (Section 2, paragraphs 5 +). (2019).

[2] Suing the AZ Legislature: AZ Attorney General admits SB 1454 HOA to be invalid and without effect.

[3] Read the book, HOA Constitutional Government: the continuing battle. 

Misinformation & disinformation in HOA-Land

“Mirror, mirror on the wall who’s the dishonest most of all?  My owner, you are dishonest here so true,  but the CAI clique is a thousand times more dishonest than you.”

The above paraphrasing of the Brothers Grimm fairytale, Snow White, sets the framework for this Commentary, which is the spread of misinformation and disinformation about HOA-Land. “Misinformation”[1] is misleading or false statements of the facts made innocently by the author.  On the other hand, “disinformation”[2] is  intentional misleading or false statements of the facts issued to advance a special interest agenda.

My reference to owner misinformation is based on countless posts, not all posts,  on social media in which only part of the facts is revealed. Obviously, those the writer wishes to be made public, but hide material facts to permit an honest and objective evaluation of the content of the post. They create a harmful and damaging image of just bellyaching and gripes and not advancing a cause for reforms.  I am disturbed by their unsupported allegations and cries — they lied, were not fair, judge is biased, etc.

There are also social media distributor/publisher websites that  carry misinformation and often publish links that have been created to provide disinformation. These websites provide misinformation since many do not examine the content of the link.

The CAI “clique” — CAI chapters, the Research Foundation, the numerous lawyer advocates websites, shill associations like ECHO or CALL, and supportive HOA websites — provide outright disinformation that goes unopposed by homeowner rights advocates. As simple examples of its communications, the CAI clique continues to advertise that it represents homeowners and associations, that its primary function is education and not a trade group, to legislatures, the courts and the public.  Disinformation is intentional misrepresentation! 

. . . .

In general, nationally, disinformation can be found almost anywhere, and in particular in national  politics. The national dynamics causing the spread of disinformation is explained by the author, Lee McIntyre; the causes hold  true to disinformation in HOA-Land an important segment of our society.

“McIntyre explains how autocrats wield disinformation to manipulate a populace and deny obvious realities, why the best way to combat disinformation is to disrupt its spread. ‘On Disinformation’ lays out ten everyday practical steps that we can take as ordinary citizens—from resisting polarization to pressuring our Congresspeople to regulate social media—as well as the important steps our government (if we elect the right leaders) must take.”[3]

For advocates, the way to stop the disinformation is to educate first the advocates so they can educate the legislators and the public. The Findings, Section II, Education for Homeowners Associations and Board Members, of the South Carolina HOA study report (2015) to the SC General Assembly recommended,

“In order to provide accurate and readily available resources to educate homeowners, board members, and interested persons about the duties and responsibilities of property ownership in an HOA community, the General Assembly . . . to seek reliable and unbiased information available from private entities . . . and provide for published and online documents and programs offering HOA education . . . .”[4]

In 2021 I argued for the need for HOA-Land education by advocates.

“HOA Reformers are needed as educators to spread the facts about HOA-Land to the public in general; especially to the legislators, the media, the HOA boards, and to the universities and high schools. . . . The Plan first requires addressing the attitudes and views of BODs, the members, and the public in general.  The conditioning and indoctrination by the biased views of the national pro-HOA special interest entity must be de-conditioned by a program of reorientation.”[5] 

References

[1] Foundation  for Individual Rights and Expression (FIRE).

[2] Id.

[3] Lee McIntyre, On Disinformation: How to Fight for Truth and Protect Democracy (2023).

[4] “Study On Homeowners Associations”, Luke A. Rankin, Chair, South Carolina General Assembly (December 18, 2015).

[5] HOA Reformers needed to educate (2021).

Georgia court: A Milestone for Fair and Free Elections

Jade Whitter posted  comments in Home Owners Association (HOA) Information (Oct. 27, 2023, FB)[1], on a Georgia appellate case [2] concerning the fundamental right to fair HOA elections. At issue here is the imposition of a quorum on board elections although the documents were silent on a quorum requirement.

Whitter wrote,

“A Milestone for Fair and Free Elections. The Court’s ruling specifically eliminates the draconian measures that obstructed free and fair elections, namely the use of a quorum as a prerequisite for a valid election. This is significant because ‘lack of quorum’ has been used to invalidate annual elections and keep many of the same individuals serving on the Board.”

The homeowners’ attorney praised the homeowner group,

“It should not be taken lightly the dedicated grass roots efforts that it took to bring this coalition of homeowners together under a unified call for fair and representative elections. I am in awe of the W.E Concerned Homeowners’[3] leadership team that was able to coordinate this effort.”

While in the public domain there are no quorum requirements, there is a downside to no HOA elections quorum. A small, highly active and united clique can take control of the HOA where there is general apathy among the homeowners, or their conduct can be described as a cult following – the HOA can do no wrong. BEWARE!

I cannot stress how vital free HOA elections are to a democratically run HOA where constitutional and fundamental homeowner rights need protection. I commented on fair and democratic HOA elections 0n 2 occasions.[4]

“I cannot overstate the profound damaging effect of the boilerplate CC&Rs covenants – the HOA-Land fair elections doctrine — that define the highly inadequate process and procedures alleged to be fair elections and approved by the member. In a democracy, the fair elections doctrine is the means for the expression of the will of the people and the consent to be governed by the HOA’s members. It is the fundamental basis for a valid consent to be governed. Unjust BOD biased election procedures deny the legitimacy of the HOA-Land doctrine.”

“HOA members have been repeatedly told that they can change things in their HOA by voting for board members and even by changing the governing documents; that HOAs are democratic because members can vote to make these changes happen.  Without fair elections procedures that contain enforcement against HOA board wrongful acts, including retaliatory acts and intimidation by the board, voting in an HOA is a mockery of democracy. You are being conned!”

[1] See Home Owners Association (HOA) Information.

[2] Willis Et Al. V. Water’s Edge, A23A0868 (Ga. Ct. App.), Decided: October 24, 2023.

[3] Concerned Homeowners is a public FB group.

[4] See in general, Reorienting the HOA board – fair elections and HOA Common Sense, No. 5: Democratic elections.

 

Where is the “community” in a community association?

On the HOA Reform (FB) page a woman in medical distress and need of support wrote, in part, “Home health couldn’t get in, friends couldn’t get in, I live alone, no family here. I tried every local government and legal aid, no help. I wrote the BOD many times, and said at August meeting that I had stroke and need gate open.”

Her situation has occurred countless times — single or elderly woman, not on good health, low-income status, and living alone is the object of HOA board abuse. And she cannot get any support from her neighbors. I responded with:

This is the biggest hypocrisy of the use of the name, community association. There is no healthy, productive community of people and calling it so doesn’t make it so. Where is the good neighbor, help thy neighbor policy, and the compassion and the charity toward your neighbor by those who allegedly sought these values. No, none at all! Trying to call it an investment or a business is laughable when we all signed a real estate contract and not a commercial business (UCC) contract! The public has been conned. And your government believes its none of their business. It supports and encourages a successionist private government allowed to function outside the Constitution.

Welcome to The New America of Independent HOA Principalities.

HB 919, the FL Bill of Rights for homeowners

On Friday, Miami-Dade State Attorney Katherine Fernandez Rundle joined Miami-Dade County Mayor Daniella Levine Cava and State Representative Juan Carlos Porras to announce a measure that would protect condo owners of abusive HOA board members.   (See Proposed new bill would protect HOA homeowners – CBS Miami (cbsnews.com)

The bill, HB919, will be The Community Associations Bill of  Rights for Florida.  It is a necessary 60 page omnibus bill since over the years so much has been denied homeowners far too long.  The numerous protections being added include:

  1. Restrictions on use of reserve funds;
  2. The appointment and duties of the association recordkeeper;
  3. The types of records to be maintained;
  4. Director conflict of interests;
  5. Provisions against SLAPP suits and forwarding by the FL Division of Condos of suspected criminal activity the law enforcement agencies;
  6. Director obligations to act in good faith and act as a prudent person would in the best interests of the association;
  7. Officer –  Director qualifications.

And much more.

Floridians have no choice if they truly seek reforms but to actively support this bill, HB 919,  and its sponsors: State Attorney Rundle, Mayor Cava, and Representative Porras.